ERC-20
A standard for fungible tokens on Ethereum, enabling interoperability across dApps.
What is ERC-20?
ERC-20 (Ethereum Request for Comment 20) is a technical standard for fungible tokens on the Ethereum blockchain, introduced in 2015. It defines a set of rules and functions (e.g., transfer, balanceOf, approve) that ensure tokens are interchangeable and compatible with dApps, wallets, and exchanges. Widely used for cryptocurrencies, stablecoins (e.g., USDT, USDC), and utility tokens, ERC-20 tokens power decentralized finance (DeFi) and other applications. Its standardization simplifies integration, making it a cornerstone of Ethereum’s token ecosystem.
Related Terms
Consensus Layer
The protocol layer responsible for achieving agreement among nodes on the state of a blockchain network.
Concentrated Liquidity
A DeFi mechanism allowing liquidity providers to allocate capital within specific price ranges for higher efficiency.
Perp DEX
A perp DEX is a decentralized exchange specializing in perpetual futures contracts for digital assets, enabling leveraged, non-expiring trades directly on-chain without intermediaries.
Contract Resolution
The process of determining the outcome of a prediction market contract to distribute payouts based on the event’s result.
Decentralization (Prediction Market)
The distribution of control and data across multiple nodes in a prediction market, reducing reliance on a single authority.
Insurance Fund
A reserve fund used to cover losses from liquidations or system imbalances.